By Socrates Smythe Saywon
WASHINGTON – The Millennium Challenge Corporation (MCC) Board of Directors has approved new programs for Fiji and Tonga, while Liberia continues to await a decision on its potential second compact, underscoring the importance of reforms and strategic engagement for the West African nation.
At its meeting on August 21, 2025, the MCC Board selected Fiji to develop a compact program and approved Tonga for a threshold program. Both nations were recognized for their commitment to policy reforms that foster investment-friendly environments and for their strategic significance to the United States in the Pacific region.
“MCC is an important tool to advance President Trump’s America First foreign policy agenda,” said Christopher Landau, Deputy Secretary of State and acting chair of the MCC Board of Directors. “With a focus on return on investment, an evidence-based approach, and a strict five-year implementation timeline, MCC ensures U.S. taxpayer dollars advance U.S. interests.”
In addition to approving new country partners, the MCC Board reviewed the results of the Foreign Assistance Review conducted by the U.S. State Department. During the meeting, the Board confirmed that a decision on Liberia’s continued eligibility for a second compact will be made in December 2025 during its regular session.
In a letter dated Friday, August 22, 2025, addressed to Liberia’s Minister of Finance & Development Planning, Augustine Kpehe Ngafuan, MCC Acting Vice President for the Department of Compact Operations, Mr. Jason Small, stated that “MCC’s continuing engagement on development of a Compact with Liberia will focus on areas that can inform the Board’s December deliberations. As a next step, MCC will work with you to identify sectors that a Compact could focus on to support economic growth in Liberia while offering opportunities for U.S. business engagements and other mutual benefits.”
Acting VP Small also informed Minister Ngafuan that “MCC intends to send a team to Liberia to advance these discussions at a time that is mutually convenient. Our team will be in touch with further details.” He further thanked Minister Ngafuan for visiting MCC Headquarters in Washington, D.C., in July 2025 and praised the strong partnership that currently exists between MCC and the Liberian government. He highlighted the successes achieved through Liberia’s first MCC compact, which supported major infrastructure and development projects.
Responding to the letter, Minister Ngafuan conveyed the gratitude of President Joseph Boakai and the Liberian government to MCC management and the U.S. government for their continued support. He welcomed the MCC’s decision to field a team to Liberia to work with the government in identifying sectors that could benefit from a second compact, emphasizing that the Liberian government eagerly anticipates the team’s visit in the shortest possible time.
Liberia’s first MCC compact, implemented between 2016 and 2021, involved $257 million in investments, supporting key initiatives such as the rehabilitation of the Mount Coffee Hydropower Plant, improvements in electricity distribution, and road infrastructure projects. Analysts note that the country must continue implementing reforms in governance, transparency, and economic management to meet the eligibility criteria for a second compact.
The MCC Board also approved the Fiscal Year 2026 Candidate Country Report, listing nations that meet the statutory criteria for potential assistance. Countries are evaluated on governance, economic freedom, and human capital investment. MCC emphasized that its results-driven model delivers measurable returns for U.S. taxpayers while strengthening commercial and strategic interests of partner nations.
Liberian officials and development experts highlight that sustained engagement with MCC, combined with targeted sector reforms, can position the country to secure future assistance. The MCC’s planned December decision on Liberia’s second compact presents an important opportunity to attract investment, stimulate economic growth, and further solidify the partnership between Liberia and the United States.
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